Polish antitrust authority imposes $57 million fine on Gazprom

Warsaw — Poland's antitrust authority UOKiK said August 3 it was imposing a fine on Gazprom of almost Zloty 213 million ($57 million, Eur48 million) for the Russian company's failure to cooperate in an investigation into the construction of the Nord Stream 2 gas pipeline to Germany.

UOKiK said Gazprom had failed to provide requested documents for the investigation and was therefore liable for the maximum allowable fine under EU law of Eur50 million.

"To my mind, it is an intentional act, the aim of which was to obstruct the ongoing proceedings," UOKiK president Tomasz Chrostny said in a statement.

In 2018, UOKiK began a probe into the financing of the gas pipeline without a legally required permit against six companies -- Gazprom and five European co-financiers, Engie, Uniper, OMV, Shell and Wintershall Dea.

At the start of this year, the watchdog requested Gazprom to provide documents relating to transmission, distribution, sales and storage contracts between a Gazprom subsidiary and the other companies that were relevant to its case.

Gazprom, in emailed comments to S&P Global Platts, said it was currently studying the notification of the fine from UOKiK, which it said it received August 3.

"It is important to note that the information requested by the Polish antimonopoly office had nothing to do with the subject of the antitrust investigation," Gazprom said.

Gazprom said it had asked UOKiK to provide a justification for the legitimacy of the request for relevant information, but it did not receive such justification.

"Upon completion of the study of the official decision of UOKiK, Gazprom will take measures to protect its interests, including appealing the decision in court, where UOKiK will need to prove the validity of its position," it said.

"In the event of a court appeal against a fine, it will not be subject to collection until the entry into force of the relevant court decision," it said.

Engie fine

Last year, UOKiK imposed a Zloty 172 million fine on Engie Energy for failing to provide documents regarding what it called "the unlawful establishment of a company financing Nord Stream 2."

In 2015, the six companies applied to UOKiK for approval to create a joint venture responsible for the construction and operation of Nord Stream 2. In 2016, UOKiK said the planned transaction could lead to the restriction of competition on the market and the six companies then withdrew their application.

After reports saying the six companies had signed an investment financing agreement, UOKiK decided to launch proceedings against Gazprom and its five trading partners, for their failure to obtain approval for the deal.